Investec Property Fund and Standard Bank issue first sustainability-linked bond in the SA REIT space

TRANSACTION OVERVIEW

Issuer Investec Property Fund

Standard Bank’s Role Sole Lead Arranger and Sustainability Agent April 2021 Bond Code IPFG01 ZAR800 million IPFG01

Issue size ZAR800 million First SA REIT to issue sustainability-linked note Tenor 3 years

IPF Long-Term Rating AA-(ZA) Sole Lead Arranger and Sustainability Agent Instrument Floating Rate Note

Pricing as at Settlement Date 3mJ + 190bps

Maturity Date 22 June 2024

Pricing Ratchet Benefit -10bps

Price Ratchet Date 30 June 2022

TRANSACTION HIGHLIGHTS TRANSACTION IMPACT • On 18 April 2021 Investec Property Fund (IPF), with Standard Bank acting as the Sole Arranger and Sustainability Agent, • The sustainability-linked bond • IPF were able to access executed the first sustainability-linked brings about a higher level a deeper pool of liquidity, of sustainability through the evident in the election to bond in the SA REIT space. need to reach the pre-agreed upsize the bond from ZAR500 • IPF raised a ZAR800 million, 3-year, targets, and demonstrates million to ZAR800 million, unsecured note priced at 3mJ + 190bps, the Fund’s commitment driven by investor demand with the bond issued through a private to ESG principles and its for this unique offering. placement which was widely subscribed efforts to promote good • The added incentive of a corporate citizenship. from multiple investors. quantifiable future pricing • The target objectives benefit for the IPF, while • The issuance of this unique bond are to procure additional investors are able to provided an opportunity to raise capital at renewable energy and encourage positive forward a competitive coupon rate and to further increase the number of looking sustainable corporate unencumber the fund’s balance sheet. green building certifications. behaviour, made this a mutually-beneficial transaction • The proceeds from the bond will be used for all parties. to refinance debt maturities and will have no impact on IPF’s loan to value ratio.

Alignment with UN SDGs It was great working with the Standard Bank team on this innovative offering. The team had great market insight and was dynamic with respect to aligning the targets of IPF and the broader investor market.’ – Jenna Sprenger, Investec Property Fund Balance Sheet and Treasury Head.

For more information on this transaction please contact:

Carl Wiesner Anneke Lund Manager, Debt Capital Markets Executive, Sustainable Finance +27 11 344 4277 +27 21 401 2221 [email protected] [email protected]